For the first time ever, the United States Postal Service is adding an 8% fuel surcharge to Parcel shipments.

Carriers like UPS and FedEx have had fuel surcharges in place since 2000—and they’ve never gone away. Now, USPS is following suit, further increasing the cost of parcel shipping.

This change is widening the gap between Parcels vs. Flats, disproportionately impacting DTC brands shipping low-value merchandise (less than $50), where the cost of shipping takes a significant bite out of profit margins:

  • Parcels → base rates + dimensional pricing + surcharges + now fuel
  • Flats → no fuel surcharge, more stable pricing

For brands shipping small, lightweight products, this is a turning point.

The opportunity for DTC brands: rethink packaging to qualify for USPS automated Flats.

At Conformer Products, we create packaging specifically designed to ship small merchandise (under 0.75″ thick) as a USPS Automated Flat—helping brands avoid Parcel rates of $4.50 – $7, and take advantage of USPS Automation Flats at rates of $1.90 – $3.00 for Flats weighing 2 – 6 ounces.

As shipping costs continue to rise, the companies that adapt their packaging strategy will have a clear advantage.